You own a 4.5 percent, annual coupon bond that matures in 2 years. The par value is $1,000 and the current yield to maturity is 4.2 percent.

1) What is the modified duration of the bond? Present your answer with 2 places to the right of the decimal.

2) Using your modified duration estimation, , what will be the change in the price of your bond, to the nearest cent, if the yield to maturity suddenly increases by 55 basis points?